Compare and Contrast 403(b) and 457 Plans

The options for retirement plans amongst governmental and tax-exempt employers are numerous. There is such a wide range of opportunities that it can be difficult to navigate when to use each of the different options and when to pair them with other available plans. 

How do we help our plan sponsors determine which is the best plan or combination of plans to help support their employees into retirement with the vast range of options available? It is our job to navigate these waters and provide support to the governmental entities that we serve daily.

In order to understand all of the different options it is important to know what is available for each employer and then to determine the differences amongst these plans. Governmental and tax-exempt employers may have access to:

• 401(k) plans
• 403(b) plans
• 457(b) governmental plans
• 457(b) tax-exempt plans
• 457(f) governmental and tax-exempt plans

Each of these plan types have specific nuances that are crucial to understand in order to provide the best insight for our plan sponsors.
With the many nuances, it is also vital to determine which plans the individual plan sponsors are allowed to maintain. As we gain a stronger understanding of the many options available, we better equip ourselves to care for our clients and provide them with the best opportunity to take care of their employee’s retirement needs.

In an effort to provide more insight into the many options available to governmental and tax-exempt employers, we have decided to make this a breakout topic at the upcoming NTSA Virtual Summit being held June 28-30. Sign up now to learn more about this specific topic and other important industry topics surrounding our industry. The things learned during the NTSA Virtual Summit will help equip you with the tools necessary to support our plan sponsors as they help their employees on their path to retirement.

Nathan Glassey, TGPC, QKA, is Vice President, Retirement Services, at  National Benefit Services. 

Opinions expressed are those of the author, and do not necessarily reflect the views of the NTSA or its members.